A joint ownership deal was discussed with TPF although, in the end, Brooks and Wright decided to go it alone. “There were discussions about TPF having a stake in the business, but they never came to fruition,” says Brooks.
Midlands start-up
The exodus didn’t stop with Brooks and Wright. In total, six of Mediatech’s eight-strong senior management team hail from TPF Direct, including account directors Vikki Benn and Carl Lucas, production director Kieran Peto and IT director Steve Gibson. The other two are purchasing director Tracey Longmuir and business development director Justin Jones, who were prised away from Adare and NPM respectively. Why have all these individuals left secure jobs with multinational companies to join a start-up in the East Midlands? The answer may lie in Mediatech’s business model.
“The bigger a business, the more cumbersome it becomes,” says Brooks. “We don’t want to get too big, because if you do, you lose touch with your clients and staff.” This is the crux of Mediatech’s philosophy. “If you’re a medium-sized firm, there’s more respect. You all know each other and the minute you lose that, you become like any other business,” he explains.
Wright says: “The minute we get to work, the first thing we do is walk the floor. It’s that personal approach, with staff and clients, that sets us apart.”“We’re not going to capture market share any other way,” adds Brooks. “That’s what made TPF Direct successful, so we know it works and we’ve got the same team.”
So far, the firm’s modus operandi is paying off in spades. Monthly turnover has grown over 300% between January and March, and Brooks and Wright have had precious little sleep. “Life stops for work for now,” Wright says, grinning. “But everyone’s still enthusiastic. We don’t have clock watchers.”
The firm’s flying start has been aided by its relationship with pharmaceutical data firm Dendrite, with which it has a two-year contract. Wright explains that the factory in which we are standing was once theirs. “They had been doing DM for some time as an add-on and had seen their margins eroded to the point where they weren’t showing the returns they expected,” he explains. “They were left with three choices: outsource, shut down, or work with a partner.”
No-brainer
With Dendrite looking for a partner, and Brooks and Wright keeping their eyes open for an opportunity to set up on their own it was, Wright says, “a no-brainer”.
However, the Dendrite work was merely a starting point, as illustrated by the fact that within a month of taking over the lease, Brooks and Wright had spent £750,000 on equipment. In the first week, the firm went from an eight-hour shift to a double day shift and by the end of the first month they knew they had to go to seven-day, 24-hour production.
It’s worked well for us,” adds Wright. “The Dendrite revenue underpins the business, but we’ve then got masses of capacity to offer to the market.”
Evidently, that capacity has been put to good use. Last month’s turnover was £270,000, compared to £120,000 the month before and just £80,000 in January. “We budgeted for £2.75m in the first year,” says Wright. “A conservative estimate now would be closer to £3.5m.”
Beyond that, in keeping with the pair’s business plan, they intend to hit the brakes. “This will be a £5m-turnover site, but we’re not going to take that and start trying to build some kind of supersite,” says Brooks. “We’d rather start up another complementary firm using the same model and then grow that.”
MEDIATECH DIRECT
Established January 2007
Location Rugby
Turnover £3.5m (projected)
Staff 42
Owners managing director Phil Brooks, sales director Dave Wright
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Kit includes two Buhrs BB600s, two Buhrs BB300s
